Positive, but Insufficient Projections

The Central Bank estimates that Costa Rica's economy will increase by 3.2%, mainly because of private consumption and a rebound in public investment.

Wednesday, January 30, 2019

According to the Central Bank's 2019-2020 Macroeconomic Program, the Costa Rican economy will increase by 3.2% in 2019 and by 3% in 2020.

The authorities consider that economic growth in 2019 will be boosted by private consumption, reflecting the increase in confidence after the approval of the fiscal reform and the impact of the improvement in the terms of trade on disposable income, and by government consumption (recovery effect after the strike).

In addition, public investment is expected to rebound strongly this year, especially for projects such as the extension of route 32 and works included in the Transport Infrastructure program. Total private investment is expected to moderate because of the slowdown in construction growth, but other forms of private investment are expected to recover because of increased confidence and a moderate acceleration in credit to the private sector.

Although Costa Rican production is expected to increase in the next two years, this is not enough for the country's needs, because according to the business sector it is urgent to reactivate the economy and with 3% growth is not possible.

You may be interested in "Inflation in Costa Rica: What to expect in 2019"

In a statement, the president of UCCAEP, Gonzalo Delgado, said that "... projected growth is not enough, when what is being done is to reactivate the economy and have a higher tax collection that helps reduce the fiscal deficit and For this, it also requires greater efficiency of the State to overcome that figure."

See Macroeconomic Program 2019-2020.

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More on this topic

Economy: Predictions Reserved for the Region

July 2019

The outlook for some economies in the region for 2019 is not the best: in Nicaragua GDP is expected to fall between 5% and 7%, while in Costa Rica the growth estimate at the end of the year was reduced from 3.2% to 2.2%.

The estimates of the Nicaraguan Foundation for Economic and Social Development (Funides), presented in its "Informe de Coyuntura - Julio 2019", indicate that by 2019 an economic contraction of between 5.4% and 6.8% will be reported in the country.

Economic Growth Expectations Downwards

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Considering the shocks that have affected national production so far in 2019, it is likely that this year economic growth will be below the 3.2% projected in the 2019-2020 Macroeconomic Program last January, explains the most recent report of the Central Bank of Costa Rica (BCCR).

Panamanian Economy will Rebound in 2019

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This year, the economy is expected to grow 3.8% and in 2019 the increase could reach 5%, which would be determined by the activities of the Canal, transportation, mining and telecommunications.

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Guatemala: 2019 Better Than 2018?

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The Bank of Guatemala expects next year's economic growth to be better than in 2018, which would be caused by higher public spending and the growth of family remittances.

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